Note: There was a flurry of bill filings in the state legislature this past week as the filing deadline for bills is Monday, March 6. The Conduit for Action Legislative scorecard will be split into parts this week to make sure all relevant bills are covered in depth, while also delivered in an easy to read format.

Elections

SB723/HB2162: SUPPORT

Scaling back Special Interest Special Elections

Sponsor: Sen. David Wallace (R-S22) / Rep. Justin Gonzales (R-H19)

Currently, there are various special elections taking place all over the state at all different times of the year. This leads to less voter turnout for votes on very specific issues such as tax increases or controversial issues. This has allowed tax increases to pass with just a small minority of people who actually cast a vote on the issue. This bill would scale back when special elections can take place to assure a more informed public and to have higher voter turnout on such important issues. Under this bill, most special elections would occur on either the primary date or general election date in election years, OR the second Tuesday in May or second Tuesday in (effectively the same dates of a primary election or general election in even years). This would also save local governments thousands of dollars they have to expend to oversee a special election. Having these issues voted on at the same time as a general election or primary election would bring added savings to a city or county. Special elections to fill vacancies in office would not have to be held on these dates since the more immediate necessity of filling a vacancy may make that impractical. This bill would guard against special interest special elections, promote more voter participation, and save the taxpayer money.

Taxes

HB1789: SUPPORT

Repeals the corporate franchise tax and filing requirement

Sponsor: Rep. Jim Dotson (R-H93)

This bill would repeal the franchise tax (capitol stock tax) and no longer require persons to file annual franchise tax reports. Only 16 states currently have a similar franchise tax. This repeal would save taxpayers $24.5 million in the first fiscal year after implementation according to estimates from the Department of Finance and Administration. According to the Tax Foundation, “Arkansas’s tax rate is the second highest in the country trailing only Connecticut. Capital stock taxes (franchise tax) create sizable disincentives to capital formation and corporate wealth accumulation, yet they raise very little revenue. The last three fiscal years, Arkansas’s franchise tax has only raised about $26 million, or roughly 0.2% of all taxes collected in the state.” This bill to repeal the franchise tax could lead to shrinking of government and provide more economic prosperity and freedom to those taxpayers affected by the franchise tax and required to file an annual report.

Scorecard Year-To-Date

Bill #

Description

Score

HB1011

prohibiting PAC-to-PAC contributions

OPPOSE

HB1012

prohibiting PAC-to-Candidate contributions

OPPOSE

HB1018

Annexation procedures amended

SUPPORT

HB1034

Licensing of hearing instrument dispensers

OPPOSE

HB1035

Restricts use of SNAP benefits to the purchase of foods with sufficient nutritional value

Conduit for Action, Inc. (CFA) promotes the reduction in the size and scope of Arkansas state government with the belief such reduction would proportionately increase individual freedom and liberties and economic prosperity for all Arkansans. During the Arkansas 91st General Assembly regular legislative session, CFA will issue weekly analysis of relevant bills filed by the legislature. CFA will take a position on those bills and either support or oppose them using the CFA Economic Freedom Filter. This filter looks at whether a piece of legislation promotes more freedom or less freedom by considering: (1) If it grows or shrinks government, (2) Increases/Decreases dependency on government, and/or (3) Spends money the state does not have.

CFA will be highlighting the bills (by topic) recently filed and which may be considered for either a committee or full chamber vote. CFA will additionally be tracking and scoring those bills mentioned. These scores will assist in rankings for the annual Calvin Coolidge Heroes of Freedom awards, highlighting those state legislators promoting legislation which promotes reducing the scope and size of government.

*This scorecard, its contents, and positions on legislation is policy only and does not indicate any personal support for or against a specific legislator-sponsor.